Clara Guibourg is an Online Writer at City A.M. She can be contacted at clara.guibourg@cityam.com. She is particularly passionate about women in business, technology and telecoms.

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Green energy investment fell by 48 per cent compared to last year (Source: Getty)

European investment into renewables has tumbled to an 11-year-low, as policy changes in the UK have pummeled green energy growth hard.

European countries invested a total of £3.8bn into renewable energy over the past quarter - leaving investment down 48 per cent compared to the same period last year.

Although this is partly explained by a natural lull in investments, following three large offshore wind deals totalling £2bn in the second quarter, Angus Crone, senior analyst at Bloomberg New Energy Finance said that the large drop also follows on recent changes in government policy that have struck against green energy:

Support policies have become less friendly to wind and solar investors in several countries, including Italy, Germany, Denmark and, most recently, the UK.

Chancellor George Osborneannounced in his July Budget that the government would be scrapping a green tax exemption enjoyed by renewable energy companies since 2001. Green energy firms’ shares took an immediate dive on the move, which was loudly criticised by environmentalists.